Wollongong office building sells for record $65m
A landmark commercial office building in Wollongong has sold for more than $65 million, marking the highest sale price for a commercial office in the city.
The site at 90 Crown Street was bought by a private Singaporean investor from Avari No.15 Pty Ltd in a deal negotiated by Ben Mostyn, Dominic Ong, James Mulcair and Tyler Talbot of Knight Frank.
The seven-level A-Grade commercial office and retail complex has 9171.6 square metres of lettable space on a 3754.7 square metre area and has ground floor retail space which includes a tavern and six levels of office space.
There were 80 buyers interested which the agents said reflected the demand for property in the NSW satellite cities.
“The intensity of buyer competition for this asset, which is considered Wollongong’s trophy asset, in one of Australia’s growing cities, resulted in a record sale price for a commercial office building in Wollongong,” Mostyn said.
According to the Property Council of Australia, Wollongong’s office market is looking confident, experiencing positive demand with almost 11,500 square metres of new office space due to come online in 2022, making the Wollongong CBD a destination of choice for employment and strong investment.
Property Council Illawarra regional director Michelle Guido said recently that over the past year, more than 8000 square metres of new office supply entered the Wollongong market demonstrating confidence by investors in the Wollongong CBD.
“We are currently experiencing record investment across our city, especially with the increased supply of A-Grade office space to attract business and professional services into the Wollongong CBD,” Guido said recently.
Knight Frank’s director Ong said Wollongong was an increasingly sought-after market for investors, with demand only set to strengthen.
“A positive demand outlook, coupled with growth in face rents and relative yield disparity to other major non-CBD markets will only enhance the appeal to investors for quality assets in the Wollongong CBD,” Ong said.
In the past few years, the southern coastal town has attracted an unprecedented level of investment into upgrading its infrastructure and skyline, including $1.6 billion of investment in the CBD. It also has a further $400 million worth of projects in the pipeline.
Guido said Wollongong has been transformed over the past few years.
“What was once referred to as ‘Steel City’ has now progressed into a more vibrant cultural coastal city attracting investment and business, leading in innovation and education and welcoming major cultural and sporting events to the city,” she said.
“Recent analysis shows that the jobs are there, with over 500,000 adult workers within an hour of the Wollongong CBD, 23,000 daily commuters to Sydney and staff turnover rates being half the national average.”